American Apparel Gets $14.9 Million Investment That May Grow

American Apparel Inc., the clothing retailer facing a possible cash shortfall, said it raised $14.9 million by selling stock to investors including founder and Chief Executive Officer Dov Charney.

A group led by Michael Serruya and private equity firm Delavaco Capital bought 15.8 million shares at 90 cents each with the right to acquire 27.4 million more at that price, Los Angeles-based American Apparel said today in a statement. Charney, the largest stockholder, bought 800,000 shares and can add 1.6 million. The deal would raise $41 million if the investors exercise all purchase rights.